Sears Holdings Corporation Provides Earnings Guidance for the Fourth Quarter and Full Year Ended January 6, 2014; Reports Comparable Store Sales Results for the Quarter-To-Date and Year-To-Date Periods Ended January 6, 2014
January 09, 2014 at 05:25 pm
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Sears Holdings Corporation provided earnings guidance for the fourth quarter and full year ended January 6, 2014. For the quarter, the company expected consolidated Adjusted EBITDA, which excludes certain significant items will be between negative $65 million to positive $65 million, as compared to $429 million in last year's fourth quarter. Net loss attributable to company shareholders for the quarter ending February 1, 2014 expected to be between $250 million and $360 million, or between $2.35 and $3.39 loss per diluted share. This includes $41 million of pension expense, $29 million for store closures and severance and $12 million from gains on sales of assets. Adjusted for these items, net loss is expected to be between $213 million and $316 million, or between $2.01 and $2.98 loss per diluted share. The ranges exclude the impact related to the Sears Canada real estate transactions previously announced, restructuring activities including severance, store closings and impairment charges, an estimated non-cash charge of approximately $145 million related to the establishment of an additional valuation allowance against state separate entity deferred tax assets, as well as other tax related matters and any non-cash impairment charges for fixed assets.
For the full year, consolidated Adjusted LBITDA expected to be between $284 million and $414 million, as compared to adjusted EBITDA of $626 million last year. Net loss attributable to company shareholders expected to be between $1.3 billion and $1.4 billion, or between $11.85 and $12.88 loss per diluted share. After adjusted items, net loss is expected to be between $811 million and $914 million, or between $7.64 and $8.61 loss per diluted share. The ranges exclude the impact related to the Sears Canada real estate transactions previously announced, fourth quarter restructuring activities including severance, store closings and impairment charges, an estimated non-cash charge of approximately $145 million related to the establishment of an additional valuation allowance against state separate entity deferred tax assets, as well as other tax related matters and any non-cash impairment charges for fixed assets.
The company reported comparable store sales results for the quarter-to-date and year-to-date periods ended January 6, 2014. For the quarter-to-date period, the company reported total domestic comparable store sales for the quarter-to-date period declined 7.4%, comprised of decreases of 5.7% at Kmart and 9.2% at Sears Domestic.
For the year-to-date period, the company reported total domestic comparable store sales for the quarter-to-date period declined 3.9%, comprised of decreases of 3.7% at Kmart and 4.2% at Sears Domestic.
Sears Holdings Corp is a United States-based company. The Company is an integrated retailer with approximately 766 full-line and specialty retail stores. It operates through two segments: Kmart and Sears Domestic. Its Kmart segment offers a range of products across various merchandise categories, including consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables and apparel, including products sold under labels, such as Craftsman, Jaclyn Smith, Adam Levine, Joe Boxer, Basic Editions and Sears branded products (such as Kenmore and DieHard) and services. The Companyâs Sears Domestic segment offers products include Kenmore, DieHard, WallyHome, Bongo, Covington, Simply Styled, Everlast, Metaphor, Roebuck & Co., Outdoor Life and Structure brand merchandise, and other brand merchandise, such as Craftsman, Roadhandler and Levi's. It also offers Shop Your Way, a member-based social shopping platform.
Sears Holdings Corporation Provides Earnings Guidance for the Fourth Quarter and Full Year Ended January 6, 2014; Reports Comparable Store Sales Results for the Quarter-To-Date and Year-To-Date Periods Ended January 6, 2014